July 2013 Industrial Production, Capacity Utilization and Capacity

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Industrial production (IP) was unchanged in July after having gained 0.2 percent in June. In July, manufacturing production declined 0.1 percent; this contradicted data from the Institute for Supply Management showing a substantial jump in manufacturing activity. At 98.9 percent of its 2007 average, total industrial production in July was 1.4 percent above its year-earlier level. Activity in the Wood Products industry shrank by 0.6 percent while Paper dropped by 0.2 percent. 

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Capacity utilization for total industry edged down 0.1 percentage point to 77.6 percent in July, a rate 0.3 percentage point below its level of a year earlier and 2.6 percentage points below its long-run (1972--2012) average. Wood Products capacity utilization fell by 0.7 percent while Paper nudged 0.1 percent lower. 

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Capacity at the all-industries and manufacturing levels moved higher (both 0.1 percent). By contrast, Wood Products remained unchanged while Paper contracted by 0.1 percent.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.